Let’s start with some basics first then we can move forward. Your question is where does Bitcoin derive its value from? Well that is a multifaceted answer. Its Utility creates the demand, plus it has a relatively high scarcity, but that is an over-simplified answer. A few other factors need to be addressed. The first point is the security of the block-chain, and the second is the openness of the block-chain which is derived from the public ledger. It literally records every transaction for public records which are available to any, and everyone to review. This allows it to stand up to public scrutiny, and a thorough technical analysis. submitted by
We will start here for you. This is the basis of the whole concept.
A Block-chain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data. By design, block-chains are inherently resistant to modification of the data. A block-chain is defined as an open, distributed ledger that can record transactions between two, or more parties efficiently and in a verifiable, and permanent way. For use as a distributed ledger, a block-chain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority.
Block-chains are secure by design and are an example of a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been achieved with a block-chain. This makes block-chains potentially suitable for the recording of events, medical records, and other records management activities, such as identity management, transaction processing, documenting provenance, or food traceability. The invention of the block-chain for bitcoin made it the first digital currency to solve the double spending problem without the need of a trusted authority or central server. The bitcoin design has been the inspiration for other applications. Block-chain also has incorporated the Merkle Tree, and Fast Merkle Trees. A Hash tree or Merkle tree is a tree in which every leaf node is labelled with a data block and every non-leaf node is labelled with the cryptographic hash of the labels of its child nodes. Hash trees allow efficient and secure verification of the contents of large data structures. Hash trees are a generalization of hash lists and hash chains. Demonstrating that a leaf node is a part of a given binary hash tree requires computing a number of hashes proportional to the logarithm of the number of leaf nodes of the tree; this contrasts with hash lists, where the number is proportional to the number of leaf nodes itself. Hash trees can be used to verify any kind of data stored, handled and transferred in and between computers. Currently the main use of hash trees is to make sure that data blocks received from other peers in a peer-to-peer network are received undamaged and unaltered, and even to check that the other peers do not lie and send fake blocks. Suggestions have been made to use hash trees in trusted computing systems. Hash trees are also used in hash-based cryptography.
Hash trees are used in the IPFS, Btrfs and ZFS file systems (to counter data degradation), BitTorrent protocol, Dat protocol, Apache Wave protocol, the Bitcoin and Ethereum peer-to-peer networks, the Certificate Transparency framework, and a number of NoSQL.
Whether you understand it, or not we will be moving more to this as a standard for all most all industries. Yes, the United States is looking at getting rid of Social Security numbers in favor of your identity being stored on the block-chain, in fact it is already in the works as they are in the research of feasibility stage.
What you need to is familiarize yourself with the following regarding block-chain protocols.
Proof of Work (POW) A Proof of Work is a piece of data which is difficult (costly, time-consuming) to produce but easy for others to verify and which satisfies certain requirements. Producing a proof of work can be a random process with low probability so that a lot of trial and error is required on average before a valid proof of work is generated. Bitcoin uses the Hash-cash proof of work system.
One application of this idea is using Hash-cash as a method to prevent email spam, requiring a proof of work on the email's contents (including the to address), on every email. Legitimate emails will be able to do the work to generate the proof easily (not much work is required for a single email), but mass spam emailers will have difficulty generating the required proofs (which would require huge computational resources).
Hash-cash proofs of work are used in Bitcoin for block generation. In order for a block to be accepted by network participants, miners must complete a proof of work which covers all of the data in the block. The difficulty of this work is adjusted so as to limit the rate at which new blocks can be generated by the network to one every 10 minutes. Due to the very low probability of successful generation, this makes it unpredictable which worker computer in the network will be able to generate the next block.
For a block to be valid it must hash to a value less than the current target; this means that each block indicates that work has been done generating it. Each block contains the hash of the preceding block, thus each block has a chain of blocks that together contain a large amount of work. Changing a block (which can only be done by making a new block containing the same predecessor) requires regenerating all successors and redoing the work they contain. This protects the block chain from tampering.
The most widely used proof-of-work scheme is based on SHA-256 and was introduced as a part of Bitcoin. Some other hashing algorithms that are used for proof-of-work include Scrypt, Blake-256, CryptoNight, HEFTY1, Quark, SHA-3, scrypt-jane.
Proof of Stake (POS) Proof-of-stake (POS) is a type of algorithm by which a cryptocurrency block-chain network aims to achieve distributed consensus. In POS-based cryptocurrencies the creator of the next block is chosen via various combinations of random selection and wealth or age (i.e. the stake).In general, a proof of stake algorithm looks as follows. The block-chain keeps track of a set of validators, and anyone who holds the block-chain's base cryptocurrency (in Ethereum's case, ether) can become a validator by sending a special type of transaction that locks up their ether into a deposit. The process of creating and agreeing to new blocks is then done through a consensus algorithm that all current validators can participate in.
There are many kinds of consensus algorithms, and many ways to assign rewards to validators who participate in the consensus algorithm, so there are many "flavors" of proof of stake. From an algorithmic perspective, there are two major types: chain-based proof of stake and BFT-style proof of stake.
In chain-based proof of stake, the algorithm pseudo-randomly selects a validator during each time slot (every period of 10 seconds might be a time slot), and assigns that validator the right to create a single block, and this block must point to some previous block (normally the block at the end of the previously longest chain), and so over time most blocks converge into a single constantly growing chain.
In BFT-style proof of stake, validators are randomly assigned the right to propose blocks, but agreeing on which block is canonical is done through a multi-round process where every validator sends a "vote" for some specific block during each round, and at the end of the process all (honest and online) validators permanently agree on whether or not any given block is part of the chain. Note that blocks may still be chained together; the key difference is that consensus on a block can come within one block, and does not depend on the length or size of the chain after it. This is what Ethereum is moving to later in 2018.
Advantages of POS over POW No need to consume large quantities of electricity in order to secure a block-chain ( it's estimated that both Bitcoin and Ethereum burn over $1 million worth of electricity and hardware costs per day as part of their consensus mechanism). Because of the lack of high electricity consumption, there is not as much need to issue as many new coins in order to motivate participants to keep participating in the network. It may theoretically even be possible to have negative net issuance, where a portion of transaction fees are "burned" and so the supply goes down over time. Proof of stake opens the door to a wider array of techniques that use game-theoretic mechanism design in order to better discourage centralized cartels from forming and, if they do form, from acting in ways that are harmful to the network. Reduced centralization risks, as economies of scale are much less of an issue. $10 million of coins will get you exactly 10 times higher returns than $1 million of coins, without any additional disproportionate gains because at the higher level you can afford better mass-production equipment. Ability to use economic penalties to make various forms of 51% attacks vastly more expensive to carry out than proof of work.
Delegated Proof of Stake (DPOS) Delegated Proof-of-Stake, on the other hand, works slightly differently. It is a more efficient PoS algorithm altogether, and seemingly provides more decentralization when it comes to issuing stake rewards to more people. Moreover, DPOS provides reliably confirmed transactions on the networks that implement this technology. If it were to be added to bitcoin at some point, it could potentially speed up transaction times, even though it would add inflation to the ecosystem as well.
Under the hood, DPOS uses a reputation system and real-time voting to achieve consensus. To be more specific, a panel of trusted parties has to be established, with all of its members eligible to create blocks and prevent non-trusted parties from participating. Delegates, the parties responsible for creating blocks, are unable to change transaction details. However, they can prevent specific transactions from being included in the next network block. This seemingly requires a fair bit of trust, which makes the concept look far less appealing.
However, there is a caveat. Any transaction not included in the next block, or a block failing to create, will mean the next network block is twice the size. In a way, this prevents malicious intent to block certain transactions or blocks being created in the allotted time period. All it does is perhaps slightly delay said transaction or block, but it is seemingly impossible to prevent inclusion and creation in the long run.
Moreover, anyone who behaves in a nefarious way will have their behavior exposed to the public. Community members of the DPOS-capable currencies can vote to have said person removed as a delegate altogether. It appears as if cheating under DPOS rules is not only impossible, but it is not in anybody’s best interest to do so either. It is equally possible to have more or fewer delegates as part of the network, although that may not necessarily be beneficial either. It is always possible to change the number of delegates, though, which is an important factor to keep in mind.
It is also worth mentioning delegates in a DPOS ecosystem are paid for the creation of blocks and inclusion of transactions. However, the delegates can use these funds to pay for marketing or lobbying efforts, which benefit the exposure of the cryptocurrency network as a whole. Network stakeholders determine how much delegates are paid for their efforts.
Delegated Byzantine Fault Tolerance (dBFT) The dBFT (Delegated Byzantine Fault Tolerance) algorithm
Consensus is about trying to maintain one version of truth. Over time we have transactions that we want to record in this ledger (book of truth). Because block-chains run decentralized around the world, and they receive different transactions at different times, they can often disagree about what is truth.
The key is to get consensus one way or another, otherwise all sorts of bad things can happen (double spending).
dBFT Delegated Byzantine Fault Tolerance is a fancy and cool name for a solution to getting eventual consensus under certain conditions.
The condition is really simple: as long as less than 1/3 of bookkeeper nodes are BAD actors, you can get eventual consensus and everyone is happy.
That's the main thing to remember, and I'll explain why 1/3 and not 1/4 or any other fraction.
An Analogy - Painting the walls A King has decided to paint the walls of his castle. He's decided it is either going to be Green (G) or Black (B). He doesn't mind which of the two but he wants consistency throughout the kingdom. And he wants all of his sons and daughters to agree on the color.
So he calls his four painters to come over and sends a signed message to his sons and daughters: I am getting my painters to redecorate my walls. I am torn between Green and Black. To resolve this, I want you, my beloved sons and daughters, to agree on the color and tell my painters and they will paint my walls. As soon as a painter hears from you and you can prove that 2/3 of my family agree on a color, she will start painting that color. Good luck.
The painters are all contactable by any of the sons and daughters. However, due to fighting between the family, the sons and daughters don't all talk to each other directly. Instead they pass messages between them. They all connected, just not directly.
Some of the family is evil and they want to get at least one of the painters to paint the wrong color. The family discuss and decide on the following protocol: 1. The oldest member of the family is elected speaker. He or she will communicate the chosen color with their signature.
Everyone will communicate that color to everyone else (until everyone is informed.) along with their signatures. If you hear from 2/3 of people the same color, then you can call any or all of the painters and tell them. If not, wait for some time and then elect the next oldest member as the speaker and repeat.
These signatures are magic and cannot be forged, and also are without a doubt proof that the person did sign it. Proving consensus protection.
With this setup, we can now prove that as long as less than a 1/3 of the family are evil, it is impossible for any of the painters to get a different message to the others and thereby paint the walls inconsistently.
The proof goes like this. Imagine that the evil members of the family belong to a secret clan F and have managed to insert themselves in between the other family members such that the rest of the family is split into two groups, R1 and R2. R1 members can talk to each other and to F but they can't talk directly to R2. And the same for R2. So F is in control here as they can control what information flows from R1 to R2 and vice versa.
In order for them to exact chaos, they need to get 2/3 of the signatures (including theirs) to be Green and Black. Remember, they can sign Green and pass that message to one person and also sign Black and pass that message to another person.
The next bit is really easy. In order to get 2/3 of the signatures, we need the size of F and R1 (the number of people in those two groups) to be >= 2/3 of the total. We also need that to be true for F and R2. That way R1 members think that it's green (for example) and the other group think it's black and they tell the painters and it all goes wrong.
However, because F is less than a 1/3 (remember, 2/3 people are honest), then it's impossible for BOTH F+R1 and F+R2 to be >= 2/3 x N. By using the fact that F+R1+R2 = N (the total number in the family) and a bit of algebraic rearrangement, you can prove that to get two separate consensus you requires F >= 1/3. Ta da - that's impossible as F < 1/3.
dBFT doesn't guarantee consensus in the sense that it's possible the messaging network is broken and people just can't talk to each other. But it gives protection guarantees that if you do reach consensus you can't then reach some other different consensus later. As long as the bad actors are less than a 1/3 of the bookkeepers (the Family), then everything is all good. This is the important part of ensuring the integrity of the system going forward.
Now that we have stated that You will need to read about the following.
Consensus Nodes (Bookkeeper Nodes) *See dBFT section
Master Nodes *See Full Node, but used in a POS block-chain. These also pay out fees to you for running a Master Node.
Full Nodes These are usually POW block-chains
Full nodes download every block and transaction and check them against Bitcoin's core consensus rules. Here are examples of consensus rules, though there are many more:
· Blocks may only create a certain number of bitcoins. (Currently 12.5 BTC per block.)
· Transactions must have correct signatures for the bitcoins being spent.
· Transactions/blocks must be in the correct data format.
· Within a single block-chain, a transaction output cannot be double-spent.
If a transaction or block violates the consensus rules, then it is absolutely rejected, even if every other node on the network thinks that it is valid. This is one of the most important characteristics of full nodes: they do what's right no matter what. For full nodes, miners actually have fairly limited power: they can only reorder or remove transactions, and only by expending a lot of computing power. A powerful miner is able to execute some serious attacks, but because full nodes rely on miners only for a few things, miners could not completely change or destroy Bitcoin.
Nodes that have different consensus rules are actually using two different networks/currencies. Changing any of the consensus rules requires a hard fork, which can be thought of as creating a new currency and having everyone move to it. Consensus rules are different from policy rules, which specify how a node or miner prioritizes or discourages certain things. Policy rules can be changed freely, and different nodes can have different policy rules. Because all full nodes must use exactly the same consensus rules in order to remain compatible with each other, even duplicating bugs and oddities in the original consensus rules, creating a full node from scratch is extremely difficult and dangerous. It is therefore recommended that everyone who wishes to run a full node use software based on the reference client, which is the only client guaranteed to behave correctly.
At minimum, a full node must download every transaction that has ever taken place, all new transactions, and all block headers. Additionally, full nodes must store information about every unspent transaction output until it is spent. By default full nodes are inefficient in that they download each new transaction at least twice, and they store the entire block chain (>60 GB) forever, even though only the unspent transaction outputs (<2 GB) are required.
Again to give you a slightly different over-simplified answer Bitcoin’s value is derived from the energy it cost to run the block-chain whether its coal-powered, hydro-powered, natural gas powered, or nuclear reactor-powered electricity.
Will Bitcoin be replaced by another block-chain as the reserve standard? Well it’s a possibility, but not likely any time soon. Most new Alt-coins are here to Compliment Bitcoin. Why do I say this? Well the goal is a Decentralized Smart Economy with the least amount of Centralized control possible. The Lightning Network integrates Bitcoin, Litecoin, and Vertcoin.
Bitcoin has 21,000,000 coins when they are finally fully released. This requires ASIC Miners a rather expensive, and specialized Computer. The block times are ten minutes. These for the older versions will still run about $20,000. It may have changed a little since I last looked, but the cutting edge ones will be much more.
Litecoin has 84,000,000 coins when they are finally fully released. This requires ASIC Miners a rather expensive, and specialized Computer. The block times are 2.5 minutes. It’s an improved clone of Bitcoin.
Vertcoin has 84,000,000 coins when they are finally fully released. The average Joe can mine this with a good graphics card. The block times are 2.5 minutes. It’s an modified clone of Litecoin.
Ethereum Is a Smart contract platform. It has many uses cases. Too many to list. This will be moved to a POS block-chain.
NEO Is a Smart contract platform. It has many uses cases. Too many to list. This has a lot of things in common with Ethereum, but at the same time it doesn’t. This uses the dBFT system, and has more common programming languages for Smart Contracts.
ARK this is a Smart Bridge ecosystem. It’s aim is to build bridges to other block-chains. Its aim is to be the hub of this new block-chain economy. Ark has bridged to Bitcoin, and also to Ethereum. They have plans for NEO, and Monero as well in the future. ARK has many other use cases I haven’t discussed, and don’t have time to right now.
These very originally made to compete with each other, but have found ways to coexist, but are also still be competitive with each other at the same time. I have kept this section short. I could spend many more pages writing about these Cryptocurrencies, and many more. These are the building blocks for the Smart Economy.
This is what Bitcoin, and all of the Alt-coins were brought about to fix.
· People used to pay each other in gold and silver. Difficult to transport. Difficult to divide.
· Paper money was invented. A claim to gold in a bank vault. Easier to transport and divide.
· Banks gave out more paper money than they had gold in the vault. They ran “fractional reserves”. A real money maker. But every now and then, banks collapsed because of runs on the bank.
· Central banking was invented. Central banks would be lenders of last resort. Runs on the bank were thus mitigated by banks guaranteeing each other’s deposits through a central bank. The risk of a bank run was not lowered. Its frequency was diminished and its impact was increased. After all, banks remained basically insolvent in this fractional reserve scheme.
· Banks would still get in trouble. But now, if one bank got in sufficient trouble, they would all be in trouble at the same time. Governments would have to step in to save them.
· All ties between the financial system and gold were severed in 1971 when Nixon decided that the USD would no longer be exchangeable for a fixed amount of gold. This exacerbated the problem, because there was now effectively no limit anymore on the amount of paper money that banks could create.
· From this moment on, all money was created as credit. Money ceased to be supported by an asset. When you take out a loan, money is created and lent to you. Banks expect this freshly minted money to be returned to them with interest. Sure, banks need to keep adequate reserves. But these reserves basically consist of the same credit-based money. And reserves are much lower than the loans they make.
· This led to an explosion in the money supply. The Federal Reserve stopped reporting M3 in 2006. But the ECB currently reports a yearly increase in the supply of the euro of about 5%.
· This leads to a yearly increase in prices. The price increase is somewhat lower than the increase in the money supply. This is because of increased productivity. Society gets better at producing stuff cheaper all the time. So, in absence of money creation you would expect prices to drop every year. That they don’t is the effect of money creation.
· What remains is an inflation rate in the 2% range.
· Banks have discovered that they can siphon off all the productivity increase + 2% every year, without people complaining too much. They accomplish this currently by increasing the money supply by 5% per year, getting this money returned to them at an interest.
· Apart from this insidious tax on society, banks take society hostage every couple of years. In case of a financial crisis, banks need bailouts or the system will collapse.
· Apart from these problems, banks and governments are now striving to do away with cash. This would mean that no two free men would be able to exchange money without intermediation by a bank. If you believe that to transact with others is a fundamental right, this should scare you.
· The absence of sound money was at the root of the problem. We were force-fed paper money because there were no good alternatives. Gold and silver remain difficult to use.
· When it was tried to launch a private currency backed by precious metals (Liberty dollar), this initiative was shut down because it undermined the U.S. currency system. Apparently, a currency alternative could only thrive if “nobody” launched it and if they was no central point of failure.
· What was needed was a peer-to-peer electronic cash system. This was what Satoshi Nakamoto described in 2008. It was a response to all the problems described above. That is why he labeled the genesis block with the text: “03/Jan/2009 Chancellor on brink of second bailout for banks.”. Bitcoin was meant to be an alternative to our current financial system.
To answer you on if this is a bubble. I personally do not see it that way at the moment. There will always be corrections in Crypto, or any field of Investing. Yes we have seen an unprecedented meteoric rise in cryptocurrencies there will be severe corrections in the future, but there will not be a ninety-nine percent crash like you are stating unless there is another Great Depression, or severe economic collapse. Cryptocurrencies are currently the greatest potential wealth equalizer around the world.
Hey guys, If you haven’t noticed on Binance’s monthly community voting round – it has been a tight battle but Substratum has been taking the lead.
I wanted to explain why Substratum has seemingly come out of no-where but has garnered some attention. Substratum is creating a solution to a very big obstacle in the world web. The below has been taken from Justin Tabb aka the Founder of Substratum and summarises what the purpose of the network is.
I hope you guys can support their vision by voting for Substratum (SUB) on the https://www.binance.com/vote.html
The Substratum Network will bring the decentralized web worldwide without the need of special software for the average internet user. We will be able to serve Substratum Requests directly to the default browser (Safari, Firefox, Chrome, Internet Explorer) without any special software installed on the average consuming users computer.
How Substratum Works
Ease of Use: currently nearly everything that has to do with crypto or the blockchain is very difficult to use and requires technical knowledge. Through our 10+ years of experience working with companies like Apple we understand the importance of a good user experience.
• The average internet user requires NO special software to use the Substratum Network. The default browser will service all requests for average users so they do not need to do ANYTHING different. Users who wish to service requests and receive SUB coins in return will have a point and click user interface that any user can setup. No technical knowledge required. SubstratumPay will be seamlessly integrated and geared towards high conversions of low technical expertise users. • Serving Up of Decentralized Content: Substratum provides a method for serving Decentralized Content (including Web Sites, Data, and Applications) through a Mac, Windows, and Linux application/service that is easy to install and run (requires no technical expertise) and serves up decentralized content using the toolkit that we have developed. This is a point and click process and requires zero technical knowledge. All the user has to do is install the application, click through a few settings and they are up and running and making Substratum Coin. Incentivizing Users to Serve the Content: in order to incentivize users to run the Substratum Network client on their machine we will be providing Substratum Coin to them for doing so. The coin is issued to the serving machine through a micro-transaction from the hosting site to the serving computer. By breaking fees down to a micro-transaction level this will greatly reduce the overall cost to companies and entities that want to host sites and applications on the internet solving yet another problem with the web as it stands today.
Privacy / Security / Encryption: by allowing millions of Substratum Network users to serve content the biggest concern becomes privacy and security. Substratum solves these issues through advanced cryptography algorithms rooted in Artificial Intelligence that ensures all data remains secure. Following the lead of BitCoin this is the strength of cryptocurrency and the crypto movement. Storage and Serving of Content: in order to serve millions of sites, databases, and applications the Substratum Network employs custom developed advanced compression algorithms and machine learning to geolocate the right Substratum Network machine to serve up the content to the appropriate user based on geolocation, this will ensure the fastest load time with the lowest amount of latency and strain on the Substratum Network and both the serving and receiving machine. DNS (Domain Name System): DNS or the Domain Name System is the system that currently tells your browser where to go when you type in a domain name. For instance when you go to Chrome and type in apple.com a DNS lookup is performed to check where to send that request, the DNS system comes back with an IP address and your request is routed there. In the first version of SubstratumDNS will be a complex, AI enabled DNS server that will receive DNS requests along with the geolocation of the requestor and find based off of that information the closest available SubstratumNode that is able to fulfill the request. Development Tools for the Decentralized Web: the Substratum Network will provide an API and SDK for developing tools on the Substratum Platform. This will bring in strong developer support and will accelerate the growth of the decentralized web on the Substratum Network. Net Neutrality: with the Substratum Network ALL web-sites and applications will have EQUAL ability to be broadcast in an equal and fair manner.
International Digital Barriers: currently countries like China have strict regulations on what their 1.379 billion citizens are able to interact with on the internet. Substratum will break down these barriers through a network of decentralized computers running the Substratum Network Software. Where other solutions that are currently used by residents in these countries require special software to be installed, like TOR, Substratum will take a reverse approach and require no special software for the average user.
High Hosting Costs: currently businesses must pay high hosting fees to get their web-sites on the internet. Amazon Web Services launched a 3.5BIL USD per year business by attempting to solve this problem. They allow you to pay for how many minutes you run a web / database server. Substratum completely solves this problem through the power of cryptocurrency by only charging for each request that is processed. You can check out the website here: • Substratum.net o And the whitepaper is available in multiple languages inclusive of Mandarin.
Furthermore, Substratum and the founders are very active in the slack – which they have recently hosted an AMA (ask me anything); I took the liberty of getting this information and if you are interested about the project to read more into it. Obviously they can’t reveal the inner workings of their product due to product sensitivity and being ahead of their competition but they are always up to date with the community through several videos on Youtube (https://www.youtube.com/channel/UCxUJoTH0XLERKl55zGnFI6g
) and announcements through their social media. I recommend you follow them.
Q: Any major talks with exchanges yet? A: We just announced that we are launching on our FIRST official exchange of COSS.IO on 9/30 trading against BTC and ETH. More to follow.
Q: Will I be able to run a supernode? A: From the beginning NO. Supernodes will only be for Substratum; however, they will run the SAME software that are used to run a NODE. In time we will develop a requirement list to run a supernode. If you qualify you can then run a SuperNode and receive a premium payout
Q: Is it possible to show a few examples of SUB payouts you get from running a node, and the tell us the ratios that affect the amount/way to calculate it somehow? (SUB owned, for how long you've been running a node etc..) Or is that still in testing? What's the difference in node rewards from someone who has 0 SUB's as opposed to someone who has X amount of SUB's? A: So the calculations for this are in process; however, you can watch our video "How Substrate Per Request Is Calculated" on our YouTube channel for an idea of what variables go into each calculation
Q: How do we prevent DDoS? A: The first step is not talking about how we prevent DDoS or any other hack. We call that security through obscurity. :slightly_smiling_face: Secondly, one of the primary ways to prevent a DDoS attack is decentralization. Well that's perfect. Lastly, there are other techniques, like black-holing and basically shutting a node down. The great news is that we will be decentralized so we are only talking about a node or specific IP Address that will not disrupt the network. :thumbsup:
Q: Say i got a website i want to publish on Substratum, how does this process go? A: Just a shout out if you ask for a lot of detail regarding technology stack and how exactly something will work we are most likely going to give you general answers. This is not to skirt the question. We want to be 10 steps ahead of anyone with nefarious plans before we get launched. You will be seeing more on this very soon. You should be seeing a video drop on this in the next week or two. The goal is to make this easy to use and powerful, plus empower others to use the tools. We're looking at things to different ways one is towards the average user who just want something sitting on their system and doesn't need any more details and the other is a super user who wants a lot of configuration options.
Q: When more people will use Substratum and more will run nodes, the value of SUB will increase. How will it be calculated how much SUB you get as a reward for running a node as value increases? Will it be calculated by Substratum itself or will it be changed manually every so often? A: We will be calculating against the live value of Substratum
Q: Is substratum detectable, for example if it’s used in a country like china and they are caught on these sites that are blocked by government… Can it be detected? A: The goal is to make it constantly moving. We do not want it to be. fast, easy, powerful, anonymous.
Q: Will there be Master Nodes? A: We will have some services that are available that will help provision nodes into the network. We are still story mapping this flow and architecture.
Q: Could we get more information about what you require to do to be a beta tester? A: To be a beta tester you only need to add yourself to the #beta-tester channel here in Slack. You will be notified when we are ready for you to download and install and the process and requirements to continue to run the software
Q: Will you keep us informed on a at least weekly base to tell/ show us the progress made? A: Yes! We will continue to drop at least 2 professionally made update videos each week (with Jason Burns the guy who does them) and we will be doing more and more candid videos
Q: Who is the winner of 10k subs and what idea did he give? And what about 2nd place and 3rd place. A: To be announced shortly. The Substrate is reserved for the payout
Q: Can we mine Sub without the software? A: I will personally be selling pick-axes on my personal website "pixaxesforsale.biz" for a low cost of $19.99
Q: Unless they disclose intelligent life in space, people are still going to be mad at the end of this. A lot more will be happy though A: Haven't found intelligent life in space. Some would question finding it on earth.
Q: From a legal stand point How are we protected if someone is running illegal content on our Node? A: Take a look at our video of "How Substratum Secures Your Site Content". You will never hold the entire piece of data except perhaps in memory if you are the one serving the request so you could never be culpable. Amazon isn't held responsible if I host illegal content now
Q: What about content control? child porno .. and so on ... ? Is there anything to control the content or? A: Excellent question. This was a big concern for us. We do not want Substratum to become the dark web. The goal is to allow the community to self-govern, vote up and down, call out illegal activity. The utilities will allow those with bad intentions to be called out. The more we grow the better we will be about wiping out things like child porn, and just as bad human trafficking.
Q: When will the raised money going to be donated? A: We have already donated $10K out and we have a pending wire for $40K going out Monday. We are working to find the BEST places with the IMMEDIATE needs.
Q: When will the livestream of the burn be? A: Burn #1 will be a livestream of my computer screen later tonight. I will announce on twitter at least an hour ahead of time and we will record it so people can see it later
Q: What will the final circulating supply be after all three token burns? A: We are still getting a FINAL number on this, we are still doing some FINAL Bonus sends but we will have the number VERY VERY soon and we will be posting it. We will be burning 60MIL tokens tonight so that should give you some kind of an idea.
Q: can you stop slack from freezing my firefox? A: Use the downloadable app, or get better internet, or get a new computer. Sounds like a dumpster fire.
Q: Everyone brings up the obvious choice of child porno that needs to be dealt with via content control. What about grayzones such as weed-selling sites? Its illegal in some countries, some not. How will Substratum deal with these grey-zones? A: Give me liberty or give me death.
Q: Could i have an invite to beta test channel on slack? A: Yes, just let a moderator know.
Q: could i get more information on what beta testers are required to do? I will happily be one if it helps the process and I actually manage to do it. A: Join the #beta-testers channel here
Q: when will we see a new homepage? A: This is being worked on now!
Q: is there a minimum amount of SUB needed to run a node? A: NO! 0 Substrate, don't worry, you will have some soon once you turn it on
Q: What about running an "micronode" on any phone (there is a big % using phones all the time), I mean an app installed on phone to run a node and to host only small content like a photos... Did you think about of this? A: https://youtu.be/h6tZ_ZFuFmY
Q: What if my website ethically and morally right and people downvote it out of jealousy will my website be removed if there are more number of downvotes and my content is clean? A: The process is NOT that simple, we will release more details later but this is being taken into consideration. I answered in a bit more detail above as well
Q: Does the Sub team ever sleep ? A: Only when driving
Q: Can I run a node on a VPS? A: I certainly won't be telling people how or where to run the node software. Do the best you can. I actually answered the VPS question above too. We will have a command line version if that is the question. That you can run on something like Ubuntu Server if you want
Q: Can the voting system for all illegal stuff on the internet also be used in a 'bad' way on the regular websites to for example gain commercial/business advantages? A: It should not, no one will have 'master control' All control, so the market decides always.
Q: Who will profit from cryptopay? How will this bring value to SUB tokens? A: Everyone will as we gain dominance. But also, Substratum the company will take a small percentage. This will enable us to continue building awesome apps. CryptoPay will be the cornerstone of many good things to come. Think retail, goods and services.
Q: I work at a games company with 200+ high powered pcs. If I install sub nodes on every single one of them at night, will IT be able to catch and fire me A: See your HR manual, or HR supervisor for those questions.
Q: How do websites and hosters remain protected from hacking, if sites are created with innate vulnerabilities does that expose other sites hosted by the same node? A: This is a great question. Hosting Nodes will have to vet out their security. Again, being decentralized goes a long way in providing security. So does encryption. We will help hosts be the best hosts possible.
Q: Please explain the earning in SUB by running a node? A: So the SUB comes FROM the HOST (who purchases the SUB) to the NODE for the cost of the transaction. https://youtu.be/LWZ1DIGGOoQ
Q: When will the tokens be sent for the 100 Sub giveaway A: Shortly
Q: How will Substratum market themselves towards countries that needs SUB the most but are hard to reach, such as North Korea, Africa, China? A: Think spider web. The more that join, and use, the less it can be controlled.
Q: How long will this bear market last for? A: Let me put the fortune teller hat on. Crypto is a young demographic currently. It will be bear'ish until we make the technology easier and they get older.
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